The Portuguese Government will begin final negotiations with the two candidates who submitted binding offers to purchase 44.9% of TAP, Air France-KLM and Lufthansa. The announcement was made by the Minister of the Presidency, Leitão Amaro, on September 4. The minister added that the offers are globally very close, which justifies the negotiation effort with both competitors to obtain improved proposals.
The privatization process provides for the sale of up to 49.9% of TAP's capital, of which 5% is reserved for workers. The two companies submitted their binding offers on July 29. The evaluations take into account not only the price, but also factors such as routes, industrial project, fleet development, focus on maintenance and sustainable fuels, and respect for labor commitments.
Air France-KLM, whose largest shareholder is the French State with 27.98% of the capital, intends to strengthen operations in Lisbon and develop connectivity in other Portuguese cities, including Porto. Lufthansa, for its part, advocates for TAP's growth in the Brazilian market, the expansion of the Lisbon hub, and the strengthening of operations in Porto, admitting it may acquire a minority stake but intends to ensure influence in executive management.
TAP reported a loss of 99.2 million euros in the first half of the year, justified by fuel prices, although it recorded historically high sales. The final negotiation period with the two competitors will last several weeks, after which the Government will choose a single candidate for the final negotiations. The decision will also require approval by the Council of Ministers and obtaining authorization from European competition authorities.
